Consider Action on a Resolution Approving the First Amendment to Conventional Hangar Lease for Commercial Aviation Use with Jani-King International, Inc. for 4572 Claire Chennault Drive at Addison Airport and the Termination of the 4570 Claire Chennault Drive Conventional Hangar Lease for Commercial Aviation Use with Jani-King International, Inc. and Authorizing the City Manager to Execute the Agreements. 

Jani-King International, Inc. (“Jani-King”) is a longtime tenant and the operator of Cavanaugh Flight Museum (“Cavanaugh”), a 501c3 non-profit educational flight museum, at Addison Airport. Jani-King’s ground leases for 4570 and 4572 Claire Chennault Dr. expired in 2021. The Town of Addison and Jani-King entered into two separate commercial lease agreements to allow Cavanaugh to continue its use and occupancy of these facilities. Jani-King’s ground lease for 4574 Claire Chennault Dr. expired November 30, 2022, but was allowed to continue on a month-to-month basis in anticipation of the outcome of this proposal. Jani-King also subleases another ground leased property located at 4576 Claire Chennault Dr., which lease is due to expire in September 2023, at which time ownership of those building improvements will revert to the Town of Addison.

The proposed First Amendment to Conventional Hangar Lease for Commercial Aviation Use (“First Amendment”) for 4572 Claire Chennault Dr. is intended to allow for the consolidation of all four properties (4570, 4572, 4574, and 4576 Claire Chennault Dr.) under the same agreement as each becomes available without further amendment or modification of the lease. The First Amendment further provides for its expiration date of June 30, 2024, at which time Jani-King and Cavanaugh agree to vacate and surrender all four properties pursuant to the terms of the agreement.

Prior to entering into the proposed First Amendment, the parties must first terminate the existing conventional hangar lease affecting 4570 Claire Chennault Dr. The proposed Conventional Hangar Lease Early Termination Agreement is included herein for the Town’s consideration and consent. Should the Town elect not to approve the proposed First Amendment, the early termination agreement would be null and void.

The city attorney has reviewed the proposed First Amendment to Conventional Hangar Lease for Commercial Aviation Use and the Conventional Hangar Lease Early Termination Agreement and finds both acceptable for the Town’s purposes. Both agreements have been executed by Jani-King as evidenced in Exhibit “A” and Exhibit “B” attached to the Resolution.

Administration recommends approval.